World Bank Group Endorses New Country Partnership Framework for Tanzania (FY2025-FY2029)

The CPF’s focus on private sector-led growth aligns with IFC’s Creating Markets Strategy, supporting conditions for private enterprises to contribute to inclusive development efficiently.

The World Bank Group's Board of Executive Directors has endorsed a new Country Partnership Framework (CPF) for Tanzania, designed to support the country in consolidating its middle-income status, achieving high human development, and contributing to the World Bank Group's (WBG) mission of ending extreme poverty and boosting shared prosperity on a livable planet.

The new CPF maximizes the impact of the One-WBG approach by coordinating the strengths of the International Development Association (IDA), the International Finance Corporation (IFC), and the Multilateral Investment Guarantee Agency (MIGA) from FY2025 to FY2029.

Key Priorities:

Human Development Agenda:

Support in education, healthcare, water, sanitation, hygiene (WASH) services, and social protection programs.

Build on Tanzania's momentum in these sectors to ensure transformative support.

Private Sector-Led Growth:

Deepen support for reforms to strengthen the business climate.

Invest in infrastructure and connectivity.

Modernize productive sectors.

Leverage Tanzania's geographic location for inclusive growth domestically and regionally.

Resilience Agenda:

Focus on climate change adaptation and mitigation.

Strengthen economic resilience.

Cross-Cutting Priorities:

Increased empowerment of women and youth.

Improved government effectiveness through efficient, transparent, and accountable institutions.

Statements from Key Officials:

Nathan Belete, World Bank Country Director: "We have seen tremendous progress with recent policy changes, such as increasing access to education for all girls coupled with broader reforms such as vocational training. The Fee-free Basic Education Policy has had an incredible impact, opening doors for 4.5 million new students. With such renewed commitment to human development and inclusion by the government, the outlook for inclusive growth and poverty reduction is favorable."

Mary Porter Peschka, IFC's Regional Director for Eastern Africa: "Private sector participation is critical to any economy's growth and development. To address Tanzania's development goals, including poverty reduction and job creation, the country has an opportunity to further leverage private sector-driven economic growth. IFC will continue to work closely with our public and private sector partners, as well as with our colleagues across the World Bank Group, to unlock the conditions needed to further support inclusive finance, agribusiness, manufacturing, and sustainable infrastructure through investments, advisory, and upstream support."

Șebnem Erol Madan, Director of Economics and Sustainability at MIGA: "In recent years, MIGA has seen a significant increase in investor interest in Tanzania, thanks to reforms undertaken by the government. As part of the new CPF, MIGA will continue to support financial inclusion and climate finance initiatives and will leverage the new World Bank Group guarantee platform to support the country in attracting and mobilizing private capital in other sectors, including renewable power and digital."

Achievements Under the Previous CPF (2018-2022):

Water Access: Increased access to safe water for nearly 4.7 million people, reducing disease burden and improving school attendance, particularly for girls.

Education: Improved secondary education for 2.7 million students, with better-equipped schools and increased vocational education enrollment, resulting in 64% employment for female graduates.

Electricity Access: Expanded access to electricity for 7.9 million rural residents, enhancing livelihoods, health, and learning opportunities.

WBG Investments:

IFC: Over $400 million in key sectors including financial institutions, agribusiness, and real estate. IFC advisory portfolio reached $11 million in 2024.

MIGA: Issued political risk guarantees in mobile money and banking sectors, with a current portfolio of $151 million and a strong pipeline in renewable energy and digital sectors.

The new CPF is informed by extensive stakeholder consultations, a country opinion survey, and aligns with Tanzania's Third Five-Year Development Plan and Zanzibar's Five-Year Development Plan. The CPF's focus on private sector-led growth aligns with IFC's Creating Markets Strategy, supporting conditions for private enterprises to contribute to inclusive development efficiently.